Oil: America Over a Barrel

Where Does Your Gas Bill Go?

Per every dollar:

Crude Oil
.21 Taxes
.36 Refining/marketing

Why Gasoline Prices Are Going Up

• High crude oil prices: Prices have increased from $29 to more than $38 a barrel since June 2003

• Restricted world supplies: OPEC: Cut its production by 4 percent since December

• Political instability in oil-rich nations: Saudi Arabia, Venezuela, Iraq and Nigeria have added uncertainty in the marketplace.

• Strong global demand: China's crude oil imports grew 36 percent in 2003. The U.S. economy has grown steadily, increasing the demand for energy.

• Tight gasoline markets

• Supply growth not keeping up with demand: Gasoline production this year is running at record high levels, but inventories are low because imports are down.

• Gasoline imports down: Imports are 8 percent lower than last year's level.

• New U.S. fuel specifications

• High transport rates

• Low European inventories

• Political instability: Turmoil in Venezuela, a leading oil and gas exporter, has cut down the amount of fuel available for the U.S. market.

• SUV growth: Sales of SUV's were up 18 percent last year, while car sales were down 4 percent.

(Source: American Petroleum Institute)

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